California Regulators Fine PacifiCare for Health Coverage Cancellations
On Wednesday, the Department of Managed Health Care fined PacifiCare of California $50,000 as part of an agreement resolving the insurer's health insurance policy cancellations, the San Francisco Chronicle reports.
Unlike four other health plans that were investigated for policy rescissions and retroactively cancelling policies, PacifiCare revoked coverage for three patients after suspecting fraud.
PacifiCare agreed to reinstate all three patients' coverage and offer to reimburse past medical claims. The insurer will offer prospective health coverage to about 57 former members (Colliver, San Francisco Chronicle, 6/19).
PacifiCare also will offer expedited dispute resolution to settle any outstanding claims with the former members (Office of the Governor release, 6/18).